MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, August 29, 2013 Gerstein Fisher's CIO Weighs Active and Passive When It Comes to Growth Gregg Fisher, CIO of Gerstein Fisher [profile], a quant shop that's entered the mutual fund business, penned an article in Forbes on growth investing. Fisher writes that growth as an investing style consistently performs best among actively managed funds. Though passive investing makes sense, overall, if an investor is pursuing a growth investing style, active funds are the way to go, Fisher says. Fisher points out that 85 percent of large cap growth funds beat their Russell 1000 Growth Index benchmark, after fees, in a 15 year stretch, but only 47 percent of large value funds did the same. Fisher says the edge may owe in part to momentum, because winning stocks tend to keep winning, and the ambiguity of valuing growth stocks. Low fees should not be the focus of investors looking to pick active funds, Fisher writes, because Gerstein Fisher research shows that the best performing quintile of funds from July, 1998 to June 28, 2013, was the second most expensive quintile. The most expensive funds were the worst performing, however. To read more, click here. Printed from: MFWire.com/story.asp?s=45814 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |